Friday, February 23, 2024

Canada Post: A pretax loss of $264 million for the third quarter

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Alan Binder
Alan Binder
"Alcohol scholar. Twitter lover. Zombieaholic. Hipster-friendly coffee fanatic."

Canada Post posted a pre-tax loss of $264 million for the third quarter of 2021, a slight improvement over the same period in 2020.

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“Although first-half results from 2021 show strong revenue growth across all business areas, this growth slowed slightly in the third quarter as consumers resumed in-store shopping,” the Postal Service said in a press release Friday.

Canada Post also reported a $492 million pre-tax loss for the first three quarters of the year, a 30.5% improvement over the same period in 2020.

The increase in revenue in the transactional mail sector is due to the federal elections held last September and the recovery of the direct marketing sector.

These results then made it possible to offset the significant decline in revenue in the parcel segment.

“The reopening of physical stores has hurt demand for parcel services. Global supply chain issues are also starting to affect incoming order volumes, particularly those from China,” Canada Post explained of the drop in packages.

The company’s operating expenses also increased by $32 million in the third quarter and $275 million since the beginning of 2021, compared to similar periods in the previous year.

“These increases are due to annual salary increases and higher costs of processing and delivering parcels compared to mail,” he said.

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